Alitheia Capital and Goodwell Investments have announced the successful exit of their joint uMunthu Fund from Baobab Nigeria, formerly Microcred Microfinance Bank, which offers banking services to individuals and small businesses in underserved areas.
After investing in Baobab Nigeria for over 12 years, Alitheia Capital and Goodwell Investments have successfully exited the investment, generating a 3x return on their original 2012 investment. This exit marks a new phase for Baobab Nigeria, as uMunthu passes the baton to the holding company, Baobab Group.
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During the investment period, Baobab Nigeria experienced significant growth, expanding its customer base by 12 times, increasing its bank branches by 7.6 times, and growing its staff by 3.2 times. Notably, the average loan and deposit sizes remained small, at ₦ 2 million ($1,250) and ₦ 91,000 ($58)
The successful exit has contributed to the uMunthu Fund's impressive internal rate of return (IRR) of 39.3%, a measure of the annual profitability of its investments.
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